Producer and consumer surplus

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What is producer surplus?
The difference between what producers are willing and able to supply a good for and the price they actually receive
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What is consumer surplus?
The difference between the price consumers are prepared to pay and the market price.
2 of 6
When consumer surplus is high...
It's inelastic
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When consumer surplus is low...
It's elastic
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Consumer surplus effects what on the supply and demand curve?
Demand
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Producer surplus effects what on the supply and demand curve?
Supply
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Other cards in this set

Card 2

Front

What is consumer surplus?

Back

The difference between the price consumers are prepared to pay and the market price.

Card 3

Front

When consumer surplus is high...

Back

Preview of the front of card 3

Card 4

Front

When consumer surplus is low...

Back

Preview of the front of card 4

Card 5

Front

Consumer surplus effects what on the supply and demand curve?

Back

Preview of the front of card 5
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